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DineEquity (DIN) Q3 Earnings Beat, Revenues Lag

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DineEquity, Inc. (DIN - Free Report) operates full-service restaurants in the United States and in other countries around the globe. The company owns and operates two restaurant concepts, which includes Applebee’s Neighborhood Grill & Bar (Applebee's) – a bar and grill concept of the casual dining restaurant industry; and International House of Pancakes (IHOP), which primarily caters to the family dining segment.

The company’s increased focus on menu innovation, guest satisfaction and marketing has been boosting comps at the IHOP segment over the past several quarters. Meanwhile, though the company is looking to build a new prototype in order to reduce costs, higher cost of sales and restaurant expenses are hurting profits.

Investors should note that the consensus estimate for DIN has been moving slightly downwards over the last 60 days. However, DIN’s earnings have been mostly strong over the past few quarters. Notably, the company surpassed/met expectations in three of the last four quarters, with an average beat of 3.35%. Meanwhile, revenues have missed the Zacks Consensus Estimate in three of the trailing four quarters.

DIN currently has a Zacks Rank #3 (Hold) but that could change following DineEquity’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DINEEQUITY INC Price and EPS Surprise

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: DIN beats on earnings. Our consensus earnings estimate called for earnings per share of $1.39, and the company reported earnings of $1.46 per share.  Investors should note that these figures take out stock option expenses.

Revenues: DIN reported revenues of $156 million. This missed our consensus estimate of $160 million.

Key Stats to Note: IHOP's domestic system-wide comps decreased 0.1%. Applebee's domestic system-wide comps declined 5.2% for the third quarter of 2016.

Stock Price Impact: In-active in pre-trading market.

Check back later for our full write up on this DIN earnings report!

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